Strong global oil supply keeps gas prices low

NASHVILLE — Gas prices are still falling after the cheapest January at the gas pump in three years.

The Tennessee average declined 2.5 cents last week, AAA reported. Sunday’s state average of $2.03 per gallon is 38 cents less than this time last year.

Tennessee drivers enjoyed the cheapest January at the pump in three years. Last month, Tennessee gas prices averaged $2.01 per gallon. The monthly average was 32 cents less than January 2018 and 11 cents less than January 2017, according to AAA.

So far this year, the lowest daily average price was $1.97 per gallon on Jan. 9. The highest price in 2018 was $2.73 per gallon around Memorial Day weekend.

“Motorists have benefited from strong global crude oil supplies, which have kept gas prices low so far this year,” said Mark Jenkins, AAA spokesman, in a press release. “Last month, oil prices averaged about $10 less than in January 2018. However, oil prices are beginning to rise, as OPEC cuts and sanctions against Venezuela weigh on the market.

“These factors, in addition to rising demand, refinery maintenance season and the switch to summer-blend gasoline will eventually boost prices at the pump in the coming months. AAA still expects the national average to peak around $2.75 per gallon sometime before Memorial Day weekend.”

Most expensive gas prices in the state

• Nashville ($2.10)

• Jackson ($2.04)

• Johnson City ($2.03)

Least expensive gas prices in the state

• Chattanooga ($1.94)

• Knoxville ($1.98)

• Morristown ($2.00)

What about oil?

The price of crude settled at $55.26 per barrel on the New York Mercantile Exchange last Friday, according to AAA. The daily settlement was nearly $2 per barrel more than the week before.